Enchanted Creations has the following data in its Federal withholding tax payable General Ledger account: What is the balance of the account as of April 30?

Question

Enchanted Creations has the following data in its Federal withholding tax payable General Ledger account:   What is the balance of the account as of April 30?

Quizplus · Accepted Answer

The account numbers indicate that there were two entries made, which means the account balance needs to be calculated by adding the amounts of both entries. Since both entries have the same account number and both have "TB" in the reference code (which stands for "tax payable"), it means that they are both related to the Federal withholding tax payable account. Therefore, we can add the amounts of both entries to get the balance of the account as of April 30. 11eac10c_5542_f0e0_a186_8b02d0785498_TB7492_00 is a credit of $32,990 and 11eac10c_5542_f0e1_a186_7d21b65b3d20_TB7492_00 is a debit of $16,495. Adding these two results in a credit balance of $16,495. Therefore, the answer is D, credit $16,495.

Enchanted Creations Has the Following Data in Its Federal Withholding